Dear Fellow Shareholders,
I am very pleased to inform you that we have reached an important milestone in rebuilding GLMB after filing a Notice to “go dark” on October 9, 2013 with the US Securities Exchange. During Q2, 2017, we achieved our goal in transforming GLMB to become the provider of reward-based live video embedded apps and services, conduct video analytics and the operation of a cryptocurrency exchange.
Our transformation was catalyzed by GLMB's partnership with GILTS Ltd that successfully developed "GiltsEdge", a Cryptocurrency-Social Media Analytics Platform. GiltsEdge has enabled the partnership to issue eGILTS Token, a cryptocurrency with true value backed by a combination of gold (physical asset) and digital assets (patents, digital platform, data analytics and knowledge). eGILTS Token is a safe haven asset that is completely independent of financial institutions at all times.
eGILTS Token will be the bridge between cryptocurrencies e.g. Bitcoin, and fiat currencies e.g. US Dollar in the real-world commerce. The true value of eGILTS Token has differentiated it from other cryptocurrencies that are based on the notion of “trust” through the use Blockchain technology to verify and validate transactions. The differentiation has elevated eGILTS Token into a safe and viable payment instrument for use in the nascent crypto-economy.
“Going dark” was a difficult decision. It was untenable for GLMB to continue as a public company for reasons beyond the control of GLMB’s Board of Directors. The Company was generating good revenues and profits for four consecutive years from 2009 to 2013, and GLMB was looking towards maintaining the trend to qualify for listing on a senior Exchange until it was jolted by a notice served by the Public Company Accounting Oversight Board (“PCAOB”).
GLMB was informed by PCAOB that the Company’s independent accountant, Lake Associates, LLC [managing member Jay Charles Lake] was sanctioned and suspended from practicing for two years by PCAOB on August 13, 2013 for violating PCAOB’s rules (PCAOB File No. 105-2013-006). The suspension of Lake Associates was very disconcerting for GLMB as the Company had just recovered from the transgressions of Lake Associates’ predecessor, The Davis Accounting Group, PC (“DAG”) [managing member Edwin R Davis]. The transgressions lead to the revocation of DAG’s practicing license by PCAOB on March 29, 2011 (PCAOB File No. 105-2009-004).
Transformation of GLMB
The transformation was realized after the GLMB-GILTS partnership was successful in developing “GiltsEdge”, a Cryptocurrency-Social Media Analytics Platform based on patents #8,005,057 and #8,089,943 granted by the United States Patent and Trademark Office. Patent #8,005,057 is owned by GLMB while the latter, patent #8,089,943 is owned by GLMB’s partner GILTS Ltd.
GiltsEdge, a rewards-based platform was developed by integrating the operations of GLMB’s rewards-based Private Blockchain WaveStream Social Media Analytics Platform (“WaveStream”) with GILTS’ Public Blockchain GiltsEdge Cryptocurrency Exchange (“GiltsEdge Exchange”).
GiltsEdge will realize GLMB’s mission to:
- Be the bridge between the crypto and fiat currencies in the real-world commerce;
- Build a sharing crypto-economy using GiltsEdge issued eGILTS Reward Token, the world’s first reward-based cryptocurrency backed by Gold and Digital Assets;
- Build a network of social media communities around the world;
- Be THE TRUSTED SOURCE of live video contents streamed to and from mobile and desktop devices;
- Establish GILTS Compendium as The TRUSTED SOURCE and Living Time Capsule for Real-time Multimedia and Data Analytics to assist GiltsEdge users to make better personal, business or political decisions.
The symbiotic relationship between WaveStream and GiltsEdge Exchange will have a knock-on effect in perpetuating and sustaining the growth and profitability of GLMB. Incentivized users of WaveStream will insure a continuous flow of live video news and multimedia contents to GiltsEdge’s portal (www.gilts.io). The live news and multimedia contents bundled with our promotional programs will encourage visitors to use WaveStream’s apps and services; and to buy, sell or mine eGILTS Tokens at GiltsEdge Exchange.
Higher usage of our apps and services; and better quality news and multimedia contents will enhance the accuracy and value of WaveStream’s data analytics. It will persuade more users to refer to GILTS Compendium for an insight to the data analytics of their selected subjects to help them make better decisions. More traffic to GILTS Compendium will lead to higher revenue and income for GLMB that will in turn influence the market on the price of GLMB’s common shares and/or eGILTS Tokens.
GLMB will jointly undertake with GILTS Ltd, an Initial Coin Offering (“ICO”) during Q1/Q2, 2018 by issuing 300 million eGILTS Tokens through the Ethereum Smart Contract System to fund the:
- Completion of beta test and scaling-up GiltsEdge infrastructure network;
- Commercialization and operation of WaveStream and GiltsEdge Cryptocurrency Exchange;
- General and administrative costs, and other internal purposes in connection with the activities of GLMB-GILTS.
The GLMB-GILTS partnership is targeting to raise US$150 million by selling 150 million eGILTS Tokens to ICO participants. The remaining 150 million Tokens will be allocated to GLMB, GILTS Ltd and other parties. There is no sale price for the 150 million Tokens, allocated to GLMB et al., before commencement of the ICO.
For the record, I wish to stress that in compliance with prevailing US laws, GLMB cannot and will not sell eGILTS Tokens to any citizen or resident of US. This restriction will also apply to citizens or residents of any country, with laws in conflict with the allocation of eGILTS Tokens and/or eGILTS Tokens in general.
WaveStream will roll-out WaveStream.SCOOP during Q2, 2018. WaveStream.SCOOP, the first of nine live video embedded apps in stages will incentivize users to form a global network of inter-connected social media communities. The incentivized communities will help GLMB to realize its goal of building and connecting GiltsEdge's sharing crypto-economy with the real-world commerce.
WaveStream.SCOOP will deliver video live streamed news service from pre-screened users. A fair reward model will be implemented for users who register as Citizen Reporters or Vloggers to earn eGILTS Reward Tokens by uploading live video news to www.gilts.io as the news unfold. The uploaded news will be verified, validated; and data analytics conducted in real-time by data analysts before release into the public domain.
The analytics will be warehoused at “GILTS Compendium” as The Trusted Source and Living Time Capsule for Real-time Multimedia Contents and Data Analytics. GILTS Compendium will enable current and future generations of GiltsEdge users to share the rich data analytics that will alter the way the public, businessmen and politicians live, work and interact to build a successful sharing crypto-economy in the real-world commerce.
Historical Financial Summary – 2009 to 2013
Annual Income Statement (values in 000s)
|Cost of Revenue||12,390||10,772||25,898||3,645||0|
|Sales, General and Admin||3,120||1,929||2,428||523||65|
|Other Operating Items||912||1,028||271||50||0|
|Additional income/expense items||(11)||(8)||(10)||0||0|
|Earnings Before Interest and Tax||1,724||1,665||2,068||106||(65)|
|Earnings Before Tax||1,724||1,665||2,068||106||(65)|
|Net Income-Continued Operations||927||1,000||1,488||57||(65)|
|Net Income Applicable to Common Shareholders||927||1,000||1,488||57||(65)|
*Period ending 6/30/13 is unaudited
In the world today, one source of lasting competitive advantage for GLMB is knowledge that can be gained from data analytics. Success in an increasingly competitive marketplace depends critically on the quality and effective management and sharing of knowledge and live video embedded apps and services by private citizens, businesses or governments.
GiltsEdge is building GILTS Compendium through a collaborative ecosystem that will change the paradigm of information systems from one of processing data and providing information to one of conducting analytics and capitalizing on the knowledge. While data, information and knowledge are all assets of an organization, knowledge however provides a higher level of meaning and value, about data and information. GiltsEdge will give WaveStream users the opportunity to contribute and be rewarded to build GILTS Compendium to become The Trusted Source and Living Time Capsule for Real-time Multimedia Contents and Data Analytics.
Our sharing crypto-economy platform, enables business to be conducted between: business-to-business, business-to-crowd, crowd-to-business and peer-to-peer participants. GiltsEdge operates under the “Sharing of Productive Assets” category. Other players in this category includes Uber and AirBnB. We differentiate GiltsEdge from other players in the category by being focused on sharing data analytics stored in GILTS Compendium with the public, businesses and governments.
In using the incentives and data analytics strategy, WaveStream relies on the theory that collectively, the demand for a large number of niche video embedded apps and services e.g. short form news; even if very low for each news stream. Short form news streams are more accessible and collectively can deliver more traffic, particularly if serialized to break down a long form topic into easily digestible chunks.
Next Steps 2018
We have set four primary goals for GLMB during 2018, namely:
- Reinstate GLMB to reporting status with the SEC;
- Launch GLMB-GILTS ICO;
- Commercial rollout of WaveStream’s apps and services, and Video Analytics as a Service; and
- Launch GiltsEdge Cryptocurrency Exchange.
GLMB’s financial exposure in the GLMB-GILTS ICO will be limited to the quantum that has been spent on the development GiltsEdge with GILTS Ltd.
My fellow Directors and I, have underscored our confidence in GLMB by retaining all the shares we have acquired from the time the Company commenced operations during 2009. The Company’s stock will continue to be traded on the Pink Sheet as we consider various options on how our shareholders could benefit from GLMB's transformation. One option under consideration include listing on a senior exchange.
Our success in monetizing GLMB’s and GILTS’ patents has given us much optimism. We are confident in growing GLMB to become a significant provider of reward-based live video embedded apps and services, conduct video analytics; and the operation of a cryptocurrency exchange.
On behalf of the Board, I trust that you will stay with us in our goal to build and connect the sharing crypto-economy with the real-world commerce. I look forward to updating you on our progress from time-to-time.
Thank you for your kind attention.
Chairman and Chief Executive Officer
Global Mobiletech, Inc